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H&R GmbH KGaA (XTER:2HRA) ROC % : 3.51% (As of Sep. 2024)


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What is H&R GmbH KGaA ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. H&R GmbH KGaA's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 3.51%.

As of today (2024-12-13), H&R GmbH KGaA's WACC % is 3.42%. H&R GmbH KGaA's ROC % is 1.94% (calculated using TTM income statement data). H&R GmbH KGaA earns returns that do not match up to its cost of capital. It will destroy value as it grows.


H&R GmbH KGaA ROC % Historical Data

The historical data trend for H&R GmbH KGaA's ROC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

H&R GmbH KGaA ROC % Chart

H&R GmbH KGaA Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.14 -0.47 8.24 7.05 2.37

H&R GmbH KGaA Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.56 -0.97 2.19 3.45 3.51

H&R GmbH KGaA ROC % Calculation

H&R GmbH KGaA's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=31.385 * ( 1 - 43.83% )/( (780.822 + 708.277)/ 2 )
=17.6289545/744.5495
=2.37 %

where

Invested Capital(A: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=903.238 - 125.599 - ( 69.362 - max(0, 240.167 - 407.182+69.362))
=708.277

H&R GmbH KGaA's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=36.176 * ( 1 - 29.16% )/( (740.697 + 718.884)/ 2 )
=25.6270784/729.7905
=3.51 %

where

Invested Capital(Q: Jun. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=988.468 - 159.836 - ( 87.935 - max(0, 335.591 - 494.43+87.935))
=740.697

Invested Capital(Q: Sep. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=943.552 - 133.645 - ( 91.023 - max(0, 267.757 - 452.368+91.023))
=718.884

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


H&R GmbH KGaA  (XTER:2HRA) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, H&R GmbH KGaA's WACC % is 3.42%. H&R GmbH KGaA's ROC % is 1.94% (calculated using TTM income statement data). H&R GmbH KGaA earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.


H&R GmbH KGaA ROC % Related Terms

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H&R GmbH KGaA Business Description

Traded in Other Exchanges
Address
Neuenkirchener Strasse 8, Salzbergen, DEU, 48499
H&R GmbH & Co KGaA is a manufacturer of chemical-pharmaceutical specialty products. The company organizes its operating activities into two business divisions: Chemical-Pharmaceutical Raw Materials and Plastics. It also has three business segments: ChemPharm Refining, ChemPharm Sales, and Plastics. The ChemPharm Refining segment produces specialty products from crude oil in the two domestic refineries (Hamburg-Neuhof and Salzbergen). Its ChemPharm Sales segment encompasses the production sites abroad as well as international sales activities. The company's Plastics segment manufactures high-precision plastic parts along with the associated tools and molds. The company derives the majority of its revenue from the ChemPharm Refining segment within Germany.

H&R GmbH KGaA Headlines

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